Tricon awarded tax break

Commissioners unanimously approve Tricon's application for a ten-year tax break on equipment and building additions made by company.

Tricon Timber LLC was awarded a tax break for the installation of new equipment by the Mineral County Commissioners during regular meetings on Feb. 15.

Under Montana state law, businesses are able to apply for a tax break when they add equipment or buildings – in the case of Tricon Timber the break is for a stacker and saw mill the company purchased.

“Just to be clear, some people were confused that this is a tax break for Tricon overall,” Commissioner Roman Zylawy said. “This is only for their expanded industry. Under state law, within five years of a new addition to an existing industry we may or may not grant a tax incentive to them. I just wanted to make it clear that this will only be pertaining to their new additions on site.”

Commissioner Zylawy then read Resolution 2-15-13, or the resolution regarding the grant of a tax exemption to Tricon Timber LLC pursuant to Title 15 Chapter 24 Part 14 of the Montana Code Annotated.

The resolution begins by stating that Tricon submitted the appropriate application for the tax break and the county commissioners gave proper notice of a public hearing (held the previous week) before going into the specific additions made by the company.

“The stacker and new mill line meet the requirements of applicable statutes to qualify as an expansion,” Commissioner Zylawy read. “Whereas, the board wishes to recognize the investment of Tricon Timber LLC in Mineral County and the positive economic impact Tricon Timber has had on the business community and tax structure of Mineral County.”

The resolution goes on to state that there is “no reason” Tricon Timber should not be granted the tax exemption.

After Commissioner Zylawy concluded reading Resolution 2-15-13, Commissioner Laurie Johnston made a motion to approve and sign the resolution, which was seconded by Commissioner Duane Simons. The motion was approved unanimously.

Tricon Timber will continue to pay taxes on the new equipment, however they will receive a 50 percent break for five years with a 10% increase in the subsequent five years.

Over a ten-year period, Tricon Timber LLC will pay an estimated $1,044,437 in taxes on the additions. Without the tax break, Tricon would have paid an estimated $1,489,533.

The amount could vary depending on mill levys.